Friday, November 13, 2015

Special situations (M&A) in the local SG market

Several Acquisitions stories caught my attention in recent months. Noting that there are no certainty that any of these acquisitions would go through, some of them potentially have a very high chance of going through due to the size and reputation of the acquirer thus removing the arbitrage completely (for example the recent Tiger Air $0.41 offer per share by SIA Ltd). The following are 3 potentially lucrative deals that the market is giving some substantial discount. 

Caveat Emptor. Appreciate the comments/discussion. 

Note: The author doe not own any stake in any of the companies mentioned.


No.


1
Company Name
China Minzhong

Current Price
S$0.77

CV
S$504.7m

5 year low
S$0.53

5 year high
S$1.85




Acquirer name
CBZ BVI (solely owned by Chairman/CEO Lin Guo Rong)

Acquirer current stake
0.82%

Offer price
S$1.20

Offer Valuation
S$786.55m

Upside
55.84%




Required cash outlay by acquirer
$551.05m for 70.1%






2
Company Name
Asiatravel.com

Current Price
S$0.245

CV
S$85.9m

5 year low
S$0.163

5 year high
S$0.485




Acquirer Name
Zhonghong Holdings (China)

Offer price
S$0.30

Offer valuation
S$105.18m

Upside
22.5%




Required cash outlay by acquirer
S$93.15m






3
Company Name
Saizen Reit

Current Price
S$1.08

CV
S$311.4m

5 year low
S$0.65

5 year high
S$1.14




Acquirer Name
Triangle TMK

Offer price
S$1.17

Offer valuation
S$337.35m

Upside
8.33%




Required cash outlay by acquirer
$337.35m

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